Employment Contract

An employment contract is a legally binding agreement between an employer and an applicant which consists of very specific employment terms. A contract that outlines a job description, compensation package, benefits, working hours, termination procedure and more is observed. An employment contract is either written or oral where the former is the common type and gives more clarity and protection to both parties. The contract dictates the outline of the working relationship by precisely defining the responsibilities and duties of the employer and employee.

Example of Employment Contract

John, as the marketing specialist, was handed a written employment agreement by the agency that described stuff like the job description, salary, benefits, and working conditions. The contract stated that John had to design marketing campaigns, do market research and cooperate with other team members. The contract also included his remuneration package, which consists of a basic pay, incentives, and health insurance. Additionally, the contract also mentioned the company policy which included the working hours, holidays and confidentiality terms as well. John and the employer subscribed to the contract which expressed their common interest in the terms. Consequently, the employment was made formal with the agency.